Mis sold Payment Protection Insurance causes 54% increase in financial complaints

Complaints to the Financial Services Ombudsman (FOS) have increased 54 per cent in 6 months, with the majority of complaints about mis sold payment protection insurance.

In H2 of 2010, the FOS received 97,237 complaints; between 1 January and 30 June 2011, they have had 149,925 new cases with 66 per cent of them (98,632) relating to the PPI mis selling scandal¹.

Of the high street banks, Lloyds TSB received the highest number of complaints. This is no great surprise as the London based bank were prolific in mis selling payment protection insurance, setting aside £3.2bn to cover PPI compensation claims.

In H1 of 2011, Lloyds received 19,569 total complaints about their products and services. 87 per cent (16,965) were about mis sold PPI, of which 84 per cent of these mis selling claims were upheld.

Nationwide were the smallest culprits, both in PPI mis selling and overall complaints. The Swindon based bank received just 2,309 complaints in H2. 1,582 were PPI related of which, though, only 6 per cent have been upheld.

Financial Ombudsman complaint data for the big banks¹

Bank Overall
complaints
 Upheld PPI
Complaints
 Upheld
Lloyds TSB 19,569 63% 16,965 84%
Barclays 16,864 43% 12,862 52%
HBOS 13,021 44% 9,945 47%
MBNA 12,500 87% 8,551 89%
HSBC 10,072 20% 8,791 18%
Capital One 7,160 14% 6,752 13%
Santander 6,434 44% 1,659 52%
RBS 5,863 45% 5,225 55%
NatWest 5,628 38% 4,234 54%
Black Horse 3,721 79% 3,533 82%
Nationwide 2,309 14% 1,582 6%
Total 149,925 47% 98,632 51%

If you took out a credit card or loan with one of these lenders, or any other lender, in the last 10 years, you could have been mis sold payment protection insurance and might be entitled to make a claim.

PPI Return can make that claim on your behalf. We’ve recovered over £20m in compensation for our clients who were mis sold payment protection insurance and our average claim is worth £2400².

Source:
¹Money Saving Expert (Sep 11)
²GW Data

Content correct at time of publication